News digest 27 October 2010

The digest starts with the latest economic figures, before cuts come back again, there’s a decided transport feel with rail, roads and air all in the news, before bad news for the wind energy sector, disputes fizz up at Coke and the OUP, and plumbers get a pay increase…

Growth forecasts – All the papers report on the latest UK GDP figures which show a higher than expected rise of 0.8 per cent for the last quarter. Many papers herald it as proof that the UK economy is more resilient to the cuts and the Telegraph (p1) even warns that interest rates may have to rise. However a couple of papers note that growth has slowed from 1.2 per cent in the previous quarter, and that the rise was driven by the building sector (Guardian p4) which can be expected to be strongly hit by cuts, so this could be the calm before the double-dip (Express p2, Mirror p6).

Fighting against the cuts – The Morning Star (p8-9) outlines how ordinary people are mobilising to fight back against the cuts with reports on recent demonstrations, while the Mirror (p6-7) continues its Save our Services campaign and looks at the impact of cuts on the real world with a feature on Morpeth where nearly half of all workers in the town work for the public sector. The FT (p2) also highlights how there are concerns about regional support, especially for deprived regions. 

Tougher benefits tests to save £8 billion – The Express (p1) leads on claims from the Department for Work and Pensions that 75 per cent of incapacity benefit claimants that have gone through a new test have been judged fit to work.

Clegg rejects social cleansing – Feeling the pressure at deputy prime minister’s questions Clegg denies that changes to housing benefit will force the poor out of London as Labour MP Chris Bryant cited claims from London Councils that 200,000 people could be forced to leave London (Guardian p12, Indie p6).

50,000 sublet council homes – And as the housing crisis worsens the Telegraph (p4) cites an Audit Commission report that says as many as 50,000 council homes may be being illegally sublet.

easyCouncil cuts quite hard – And the Guardian (p1) reports that the flagship easyCouncil Barnet has actually found it rather difficult to make cuts and savings and the council is actually spending more to make savings…

Arts Council cuts less than expected – All 850 bodies regularly funded bodies supported by the Arts Council in England will have to make cuts of 6.9 per cent, but warned that 2012 will be much more difficult (Guardian p7).

Rail rise higher than expected – And a few of the papers feature the latest update on next year’s rail prices, a report from Passenger Focus says the cap will be 10.8 per cent, with average rises of 10 per cent on popular routes (Telegraph p9, Mirror p8, Sun p20).

Alstom trial continues – The FT (p27) continues its coverage of the court action over the Siemens trains, were orders taken for granted?

All change – On the buses and Go Ahead boss steps down. Keith Ludeman to be replaced by TFL’s David Brown next July (Express p65, Mail p78, Indie p38, Telegraph b8) while the FT (p23) has an overview of London’s bus sector.

Buses suspended after loyalist riots - Attack on Translink worker in Newtownabbey comes after another bus driver was hijacked on Monday night (UTV News).

Ford drives into profit – Carmaker sees sales for last quarter jump 70 per cent to £1.07 billion (Mail p79, Times p49, Guardian p26, FT p27).

Air cargo drops – Moving to the air weak consumer and business confidence has seen freight traffic drop by six per cent last month, the second consecutive fall, although passenger traffic up 10.5 per cent (Indie p36)

BA airport warning – BA chairman Martin Broughton says UK should not put up with US airport security demands like having to remove shoes and scan laptops separately (Indie p17, Guardian p13, Telegraph p11) while the Mail (p79) trails the cartel ruling, November 9 is getting closer.

RAF intercepts – Planes scrambled twice last week to see off Russian bombers in UK airspace (Sun p13).

Foreign focus for defence? – Defence secretary warns UK defence companies that unless they focus on value for money the UK government will source from abroad (Mail p77).

Vestas reverse – Wind energy company announces major restructuring including the closure of five factories and the loss of 3,000 jobs (Times p47, FT p25, Guardian p27).

Skykon suspends payment – Danish turbine manufacturer is cash strapped (Telegraph b4).

Steel warning – ArcelorMittal fears drop in demand for steel as US construction sector suffers and growth slows in China (Times p40, Guardian p29).

FBU talks today – Over strike action on November 5 (Sun p13, Guardian p7, Telegraph p6).

Coke dispute spills over - The recent strikes at Coca-Cola’s plant in north London have been replicated across the UK and Europe today with demonstrations scheduled at seven UK sites. Workers are concerned about lack of consultation over the company’s planned restructuring, especially as Coke remains profitable and expects continued growth (Unite release, Manufacturer, Publican).

Oxford University Press workers strike for fair pay - 90 Unite members will begin a three-day strike at Oxford University Press Distribution Services today (Unite release).

Plumbers’ pay rises three per cent – Some good news as negotiations see hourly rate up to £14.55 (Unite release, Construction Enquirer, Building)

Rock boss off – Is Gary Hoffman on his way out? Talk that the man who was brought in to help rescue Northern Rock may soon be off to another City job (Sun p56, Telegraph b4, Times p43).

Edited by Mik Sabiers

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